A corporate secretary plays an essential function in a company. Their responsibilities beyond simply doing regular administrative work. They are also involved in legal work and company governance activities. Given the significant responsibilities, there are certain essential aspects to take into account when choosing a corporate secretary in Indonesia.
Responsibilities of a Corporate Secretary
The position of a corporate secretary has changed over time to become more than just an administrative officer. In Indonesia, a company secretary could be expected to perform the following duties:
- Serves as an official for the business and counsels the board of directors on the company’s operational matters.
- Serves as liaison between the company and shareholders and aids in organizing board meetings.
- Helps in ensuring that the relevant statutory recommendations and requirements are followed.
- Helps in ensuring the security of the corporate seal and prevents unauthorized use.
- Assists with the timely filing of full accounts and yearly returns.
- Serves as the primary contact person for the company’s shareholders to obtain company governance matters.
Eligibilities of a Corporate Secretary
Besides the legal criteria that must be fully adhered to, there are other eligibilities an individual should have prior to being eligible for carrying out the duties of a corporate secretary. The said eligibilities are as follows:
- Having a thorough understanding of corporate law and governance
- Having excellent capabilities at analyzing and evaluating large amounts of information
- Having exceptional attention to detail.
- Outstanding writing communication abilities
- Capable of collaborating with individuals of various ranks
- Reliable and accountable
What to Look for When Recruiting a Corporate Secretary
Only a genuinely qualified person is able to perform corporate secretarial work. As elaborated on above, the roles of a company secretary go far beyond regular office duties. Therefore, it’s vital to take into account the following factors when looking for a corporate secretary.
1. In-depth understanding of company laws
It’s important to note that a corporate secretary serves as the legal representative of a corporation. Therefore, it entirely makes sense to hire someone who is exceptionally conversant with the applicable rules and regulations.
If you hire an individual with inadequate competencies in relevant fields, you might put your business at risk. Take, for example, a corporate secretary in Indonesia who should be aware of the deadline for submitting annual reports already audited. If they fail to do so, they will be subjected to fines.
2. Adept at administrative tasks
A corporate secretary is like the right-handed man of a company. They should be adept at performing various administrative tasks. These include handling annual reports, filing tax returns, and doing regular secretarial duties, such as answering quires and picking up calls.
The company can indeed use outsourcing services to perform financial tasks, such as audit and accounting responsibilities. However, the company secretary should also have the capability to comprehend, verify, and communicate with the individuals in charge.
3. Having financial competencies
An individual must have efficient skills in finance to be eligible for a corporate secretary position. The reason for that is they will have to deal with financial statements regularly. Suppose you hire someone with limited financial competencies. In that case, you will put the company at risk, leading the company to suffer a loss due to a simple oversight.
4. Effective communication abilities
Much like other corporate jobs, a person should also have proficient communication skills to be eligible for the position of a company secretary. A company secretary is like the face of the company.
A secretary acts and speaks on behalf of the business, mainly when conversing with essential parties, like directors and shareholders. In addition, a corporate secretary must have exceptional organizing skills. That’s because they will have to organize various meetings, including board members’ meetings, annual general meetings, and general meetings on a regular basis.
Now you know that the duties of a company secretary go much beyond regular administrative tasks. They are the face of your business. Therefore, it’s vitally important to hire an individual who truly has the qualities of a skilled corporate secretary.
Although hiring a corporate secretary in Indonesia is strongly advised for all companies established in the country, it is only necessary for a publicly traded company (Perseroan Terbatas). If you are a foreign entrepreneur planning to set up a company in Indonesia, you can always rely on IZIN.co.id. We have assisted over 8,000 business owners starting up their companies since 2012. So, don’t hesitate to reach us via email at email@example.com or via WhatsApp.